Buffet warns all investors to stay away from the cryptocurrency
US billionaire Warren Buffett, the chairman and chief executive of Berkshire Hathaway has joined the chorus of voices and has ruled out a foray into cryptocurrencies, warning that the Bitcoin boom will “come to a bad ending”.
Speaking to CNBC, Buffet said: “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending” noting that he didn’t understand Bitcoin and blockchain-based digital assets.
“When it happens or how or anything else, I don’t know. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth.”
It’s not the first time Buffett has dismissed cryptocurrencies. In 2014, the investor dubbed Bitcoin a “mirage,” warning investors to “stay away from it.”
The price of bitcoin declined 3.69 percent to $13,907 Wednesday, according to data from industry website CoinDesk. The digital currency is up more than 1,500 percent in the past 12 months.
Jamie Dimon, chief executive of JP Morgan recently also commented that Bitcoin was a “fraud,” further adding that he would fire employees trading the digital currency.